A Germany-based foundation dedicated to the philosophies of thinker Friedrich August Hayek has awarded Estonian Prime Minister Andrus Ansip and Latvian Prime Minister Valdis Dombrovskis its annual international prize.

The Estonian head of government said in his acceptance speech on December 4 in Freiburg, Germany, that the prize was a testament to the Estonian people, "who have played the most important part in the success story that is their country." He also credited two of his predecessors in office, Siim Kallas and Mart Laar.

Ansip said Estonia’s economic policy is founded on the same worldview championed in its purest form by Hayek. “And that is so-called common sense policy,” he said.

“One must always be prepared to make unpopular decisions. One should understand that money does not allow itself to be played with. We can permit this only what we have truly created. That means following the principle of a balanced budget,“ said Ansip.

Ansip also mentioned his co-honoree Dombrovskis. “This shows the common future perspective in our region, our similar view of the possibilities for surmounting the crisis, even the fact that the friendly sense of solidarity has been noted from outside,“ said Ansip.

Previous laureates of the award established to mark Hayek's birth centennial in 1999 include 1980s British Prime Minister Margaret Thatcher and now-Italian Prime Minister Mario Monti.

Chairman of the Social Democratic Party (SDE) and former minister of health and labour, Jevgeni Ossinovski expects poverty in Estonia to decrease as an effect of the current government's income tax reform, though the actual impact will become clear only after data is evaluated next year.